Christchurch optimistic through quakes

There will be huge investment in Christchurch as it is rebuilt. Photo / Getty Images

Aftershocks are failing to put a dampener on Christchurch firms, according to a survey that finds the city's business confidence is outperforming the rest of the South Island.

The study, by business advisers Polson Higgs and McCulloch and Partners, found that 55 per cent of businesses in the earthquake-ravaged city expected to grow by more than 10 per cent each year over the next five years.

A further 17 per cent of Christchurch firms were expecting growth of 1 to 5 per cent a year, while 25 per cent were anticipating annual growth of between 6 and 10 per cent.

The survey said only 26 per cent of businesses in the rest of the South Island expected to grow by more than 10 per cent annually over the same period.

Investment intentions were also stronger among Christchurch firms than those outside the city.

Michael Rondel, a partner with Polson Higgs, said Christchurch's optimism was impressive.

"In the last 12 months [Christchurch] businesses haven't been able to execute their business plans - they've obviously been distracted by the impact of the earthquakes and now there's just a general feeling of positivity around the rebuild."

Canterbury Employers' Chamber of Commerce chief executive Peter Townsend said the survey result was good news, reflecting the fact that Christchurch was going to be "the construction capital of New Zealand" over the next 10 years.

"There's going to be huge investment in the city as we rebuild."

The survey also indicated that South Island businesses outside Christchurch had been "significantly negatively affected" by the earthquakes in terms of debt collection (possibly as a result of cash-flow problems facing Canterbury-based debtors), transport and communication, access to reinsurance, operational efficiency and the ability to implement business plans.

Christchurch businesses reported challenges in areas such as employee morale and engagement, as well as the availability of skilled workers.

Townsend said the city had never been in a better position to predict its labour requirements accurately.

The survey was completed last month and included 49 Christchurch businesses and 47 others from across the South Island.